Juan's will creates a General Power of Appointment Trust (GPOA Trust) that distributes

income to his wife annually for life and gives his wife a general power of appointment over the assets in the trust.

Of the following statements, which is true regarding a GPOA Trust?

Correct!

The GPOA Trust automatically qualifies for the unlimited marital deduction because Juan's wife has a general power of appointment over the trust assets.

The GPOA Trust only qualifies for the unlimited marital deduction if thetrustee agrees to make distributions of principal to Juan's wife.

The unlimited marital deduction cannot be elected over the property transferred to the trust because Juan's wife cannot appoint assets to herself, her creditors, or to anyone on her behalf.

The unlimited marital deduction is not available because Juan's wife does not

have the current right to the assets in the trust.appointment over the trust's assets.

Question 2

10/ 10pts

Of the following, which is not a benefit of the unlimited marital deduction?

Correct!

The use of the unlimited marital deduction can shelter the future appreciation of an asset from estate taxes at the death of the second-to-die spouse.

The unlimited marital deduction can ensure the surviving spouse has sufficient assets to support her lifestyle.

The estate tax on property can be deferred until the death of the second-to-die

spouse.

The unlimited marital deduction can fund the applicable estate tax credit of the surviving spouse.

Question 3

10/ 10pts

Of Pablo's $10,000,000 federal gross estate, Pablo's will includes one specific bequest of

$7,500,000 to his wife, Ariana, and directs the debts and other expenses of $1,000,000 to be payable from the residue of the estate. The residuary heirs are Pablo's children. What is the amount of the marital deduction included on Pablo's federal estate tax return?

Correct!

$7,500,000

$0

$6,500,000

$8,500,000

Question 4

10/ 10pts

Given only the following information, which would qualify for the estate tax unlimited

marital deduction?

Correct!

A bequest of 2,000 shares of Holiday incorporated stock to a surviving spouse.The surviving spouse is a U.S. citizen.

Property transferring to a surviving spouse as beneficiary of an irrevocable trust created six years ago. At the time of the trust's creation, the gift was complete, but the decedent did not pay any gift tax as the only beneficiary of the trust was the decedent's spouse.

The bequest of the life estate interest in a home to the surviving spouse. The decedent bequeathed the remainder interest to his children.

A bequest of property with a fair market value of $10,000 to a surviving spouse. The surviving spouse disclaims the interest and the property transfers to the decedent's residual heirs, his children.

Question 5

10/ 10pts

Of the following property interest, which qualifies for the unlimited marital deduction?

Correct!

The executor of John's estate made the QTIP election for the bequest of a life estate interest in his personal residence to Deborah, John's wife.

John dies and leaves his vacation home to his wife as trustee of a testamentary trust created for the sole benefit of his two children.

John bequeaths his interest in community property to his wife subject to his wife surviving him by more than 8 months.

At John's death, his will created a trust for the benefit of his wife. The trust document gives his wife the authority to appoint assets to herself, her creditors, and her heirs with the approval of John's brother, Colin.

Quiz Score:50out of 50

Previous

Next

Submission Details: